TearLab Corporation Reports Fourth Quarter and Full Year 2018 Financial Results
ESCONDIDO, Calif., March 21, 2019 (GLOBE NEWSWIRE) -- TearLab Corporation (OTCQB:TEAR) (“TearLab” or the “Company”) today reported its consolidated financial results for the fourth quarter and twelve months ended December 31, 2018. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.
Recent Highlights
- $0.7 million operating profit for fourth quarter 2018 and $2.5 million full year 2018
- Reduced fourth quarter net loss by 87.5% compared to 2017 from $ 4.0 million to $0.5 million; and full year 2018 net loss by 86.2% from $16.1 million to $2.2 million
- Amended loan agreement with CRG to extend the “Interest-Only Period”, pushing out the principal payments to 2020
- Cash position of $8.5 million as of December 31, 2018, an increase from $8.2 million as of September 30, 2018 and $7.3 million as of December 31, 2017
For the three months ended December 31, 2018, TearLab’s net revenues were $6.0 million, down 13% from $6.9 million for the same period in 2017.
The following table sets out the estimated annualized revenue per U.S. device and account analysis for the fourth quarter ended December 31, 2018:
| Annualized | Annualized | |||||||||
| Active | Active | Revenue | Revenue | |||||||
| Program | Devices | Accounts | Per Device | Per Account | ||||||
| Purchased | 1,123 | 946 | $ | 2,361 | $ | 2,802 | ||||
| Masters | 1,730 | 210 | $ | 2,861 | $ | 23,567 | ||||
| Flex | 1,967 | 668 | $ | 7,097 | $ | 20,898 | ||||
| Total | 4,820 | 1,824 | ||||||||
The Company’s reported net loss for the 2018 fourth quarter was approximately $0.5 million, or ($0.05) basic loss per share, compared to a reported net loss of approximately $4.0 million, or ($0.63) basic loss per share in the fourth quarter of 2017.
“In the fourth quarter and throughout 2018, we made progress in executing our new business strategy, growing our customer base and strengthening our cash position. We are committed to capitalizing on the current market momentum for osmolarity and remain committed to bringing the Tearlab Discovery™ system to the U.S. market,” said Seph Jensen, TearLab’s Chief Executive Officer.
About TearLab Corporation
TearLab Corporation () develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System. TearLab Corporation's common shares trade on the OTCQB Market under the symbol 'TEAR'.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, the ability to capitalize on the current market momentum for osmolarity and to bring the Tearlab Discovery™ system to the U.S. market. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties detailed in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2018, to be filed with the SEC on or about March 21, 2019. We do not undertake to update any forward-looking statements except as required by law.
CONTACT:
The Ruth Group
Lee Roth
Tel: 646-536-7012
| TearLab Corp. Condensed Consolidated Statements of Operations (Expressed in U.S. Dollars (000's) except for number of shares and net loss per share) (Unaudited) |
| Three months | ||||||||
| ended December 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenue | ||||||||
| Product sales | $ | 5,275 | $ | 6,288 | ||||
| Reader equipment rentals | 713 | 593 | ||||||
| Total revenue | 5,988 | 6,881 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 2,143 | 2,741 | ||||||
| Cost of goods sold - reader equipment depreciation | 186 | 793 | ||||||
| Gross profit | 3,659 | 3,347 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 596 | 3,036 | ||||||
| Clinical, regulatory and research & development | 822 | 1,119 | ||||||
| General and administrative | 1,492 | 2,017 | ||||||
| Total operating expenses | 2,910 | 6,172 | ||||||
| Income/Loss from operations | 749 | (2,825 | ) | |||||
| Other income (expense) | (1,261 | ) | (1,141 | ) | ||||
| Net loss and comprehensive loss | $ | (512 | ) | $ | (3,966 | ) | ||
| Weighted average shares outstanding | 11,296,998 | 6,303,589 | ||||||
| Net loss per share | $ | (0.05 | ) | $ | (0.63 | ) | ||
| TearLab Corp. Condensed Consolidated Statements of Operations (Expressed in U.S. Dollars (000's) except for number of shares and net loss per share) |
| Years Ended December 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenue | ||||||||
| Product sales | $ | 22,153 | $ | 24,237 | ||||
| Reader equipment rentals | 2,846 | 2,882 | ||||||
| Total revenue | 24,999 | 27,119 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 8,495 | 10,993 | ||||||
| Cost of goods sold - reader equipment depreciation | 961 | 2,121 | ||||||
| Gross profit | 15,543 | 14,005 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 3,334 | 12,330 | ||||||
| Clinical, regulatory and research & development | 3,587 | 4,691 | ||||||
| General and administrative | 6,160 | 8,772 | ||||||
| Total operating expenses | 13,081 | 25,793 | ||||||
| Income/Loss from operations | 2,462 | (11,788 | ) | |||||
| Other income (expense) | (4,713 | ) | (4,313 | ) | ||||
| Net loss and comprehensive loss | $ | (2,251 | ) | $ | (16,101 | ) | ||
| Weighted average shares outstanding - basic and diluted | 10,615,513 | 5,789,714 | ||||||
| Net loss per share – basic and diluted | $ | (0.21 | ) | $ | (2.78 | ) | ||
| TearLab Corp. Consolidated Balance Sheets (Expressed in U.S. Dollars (000's) |
| December 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 8,473 | $ | 7,272 | ||||
| Accounts receivable, net | 1,186 | 1,536 | ||||||
| Inventory | 1,987 | 1,998 | ||||||
| Prepaid expenses and other current assets | 690 | 690 | ||||||
| Total current assets | 12,336 | 11,496 | ||||||
| Fixed assets, net | 2,024 | 2,739 | ||||||
| Intangible assets, net | 2 | 10 | ||||||
| Other non-current assets | 151 | 100 | ||||||
| Total assets | $ | 14,513 | $ | 14,345 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 681 | $ | 1,720 | ||||
| Accrued liabilities | 2,363 | 2,859 | ||||||
| Deferred Rent | 13 | 42 | ||||||
| Total current liabilities | 3,057 | 4,621 | ||||||
| Long-term debt, net | 32,014 | 28,290 | ||||||
| Long-term related party payable | 111 | - | ||||||
| Total liabilities | 35,182 | 32,911 | ||||||
| Stockholders’ deficit | ||||||||
| Capital stock | ||||||||
| Preferred Stock, $0.001 par value, 10,000,000 authorized, 556 and 2,012 issued and outstanding at December 31, 2018 and December 31, 2017 | - | - | ||||||
| Common stock, $0.001 par value, and 40,000,000 authorized, 11,296,998 and 7,986,998 issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 11 | 8 | ||||||
| Additional paid-in capital | 510,380 | 510,235 | ||||||
| Accumulated deficit | (531,060 | ) | (528,809 | ) | ||||
| Total stockholders’ deficit | (20,669 | ) | (18,566 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 14,513 | $ | 14,345 | ||||
